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Let’s Take a Look at the New Tax Bill

Proof that engaging individual donors through fundraising events with the expertise of a professional auctioneer works.

More than 7 in 10 dollars given to charity last year came from individuals and households. Granger, Thagard knows these individuals personally!

However, while reaching out to individuals continues to be a priority, passage of the new tax reform legislation is snarling up previous predictions for 2018. Here’s what we mean.

As reported by The Washington Post, above-average growth in personal income and net worth would normally lead to increases in charitable giving, but the new tax bill doubles the standard deduction for households. This means the standard deduction for married couples, for example $12,700, will roughly double to $24,000. It only makes sense for families that can give above this high threshold to itemize. And historically, itemizers are almost twice as likely to donate to charity, and comprise more than 8 percent of total giving.

What it means: Experts are predicting downturns in charitable giving to the tune of $13 billion this year. This is something nonprofits need to be aware of sooner rather than later.

Hold on: While the incentive to give is being lowered for middle class families, the new tax bill also means more money is staying in the pockets of the average family. As the economy improves and GDP rises, this likely means people will set aside more money for travel. At Granger, Thagard, we aspire to be a resource for many once in a lifetime experiences and vacation destinations. This means your donors attend your event to pick and choose their next travel adventure.